Federal budget presents skills opportunities

On May 14, Australian federal treasurer Jim Chalmers unveiled the 2024-25 Federal Budget, introducing a variety of new spending initiatives in line with the principles from the previous year’s Infrastructure Policy Statement, where the government prioritised investments to enhance productivity, improve liveability and promote sustainability. 

These measures aim to address and support industry demand while ensuring the essential skills, materials, and capacity necessary to successfully execute projects vital to Australia’s future prosperity.

Renewables

The budget includes a substantial $3.2 billion allocation to the Australian Renewable Energy Agency over the next decade to drive the commercialisation of pivotal net-zero technologies. 

“Making our future here in Australia is about making the most of our nation’s potential and making sure everyone shares in the benefits,” stated Prime Minister Anthony Albanese.

Additionally, a new $1.7 billion Future Made in Australia Innovation Fund has been established to facilitate the deployment of technologies in key sectors such as low-carbon liquid fuels, green metals, and batteries.

This funding includes an allocation of $1.5 million to investigate the viability of low-carbon fuels through regulatory impact analysis on their potential advantages and drawbacks.

Climate Council CEO Amanda McKenzie remarked that by investing billions in clean industries such as critical minerals, hydrogen, and manufacturing, the budget demonstrates that “gas and coal are not part of the budget’s vision”, signalling that future prosperity will be based on “building a renewable future and clean industrial base” that “will create good jobs and better opportunities for Australians”.

The budget also designated $32.2 million to initiate the Guarantee of Origin scheme for renewable hydrogen in the upcoming fiscal year, with plans to expand the scheme’s scope to include the accreditation of emissions content for green metals and low carbon liquid fuels.

This scheme aims to meticulously track and verify emissions associated with hydrogen and renewable electricity made in Australia, generating digital certificates that capture production data and greenhouse gas emissions. 

Tourism and Transport Forum CEO Margy Osmond commended the federal government’s budget focus on advancing sustainable aviation fuel (SAF) development.

“Australia has the potential to become a world-leading supplier of sustainable aviation fuel, with enough feedstock to replace 90 per cent of local jet fuel with SAF by 2050,” she said.

The budget introduces a tax incentive of $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040, supporting projects for up to a decade with an estimated budget cost of $6.7 billion.

Another $1.3 billion is set aside for the Hydrogen Headstart program over the next ten years, along with $17.1 million allocated to implement Australia’s National Hydrogen Strategy. 

Apprenticeships and training

Further measures aimed at benefiting the automotive industry were included in the budget, these focused on strengthening the workforce and infrastructure to support the transition to cleaner energy:

• Grants of $10,000 for apprentices working with EVs and wage subsidies for their employers
• $50 million capital and equipment investment fund for facility upgrades to expand clean energy training capacity
• $30 million for a clean energy teacher, trainer, and assessor workforce
• $1500 in annual reimbursements for employers accessing Group Training Services for their clean energy apprentices
• $55.6 million for the Building Women’s Careers program supporting women to enter male-dominated industries and address critical skills shortages
• $265.1 million to provide additional targeted support under the Australian Apprenticeship Incentive Scheme.

According to the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent skills training, higher education and international education providers, the budget undervalues the significant role played by independent Registered Training Organisations (RTOs), which cater to 89.4 per cent of the 4.5 million student enrolments in skills training programs.

ITECA chief executive Troy Williams said the Albanese government “missed a chance to maximise its influence on skills training by not wholeheartedly endorsing independent providers”.

“This budget could have done more to prioritise students at the core of the skills training system, where the Australian government supports their choice to pursue studies with an independent training provider or public TAFE college.”

The ITECA contends that strengthening support for students engaged with independent RTOs has the potential to unlock unparalleled workforce capabilities and foster innovation. 

Engineers Australia (EA) CEO Romilly Madew AO praised the Federal Budget for its forward-thinking approach, emphasising the focus on upskilling the workforce to navigate the energy transition and enhance digital capabilities, noting the importance of continuous learning for Australian engineering. Ms Madew highlighted that “engineers will be instrumental in advancing an agenda designed to tackle the financial, workforce, environmental, and global challenges we currently face.” 

She stressed the importance of “boosting engineering skills in government” and investing in research and development to create innovation and value. She underscored that the budget’s Future Made in Australia framework marks a significant shift towards strategic investments to maintain competitiveness and sustainability on a global scale. 

EA expressed support for the budget’s initiatives to accelerate the transition to net zero, with Ms Madew describing clean hydrogen as “the Swiss Army Knife of the energy transition”.

She expressed the need for a robust regulatory framework and adequate funding to fully leverage hydrogen’s potential in Australia’s economy. 

Ms Madew called for extending support to engineering students to address workforce shortages by highlighting the impact of the new Commonwealth Prac Payment, stating that students in key fields like teaching, midwifery, and social work now receive $319.50 a week during their practical placements.

Given the shortage of engineers, Ms Madew stressed the need for the government to provide similar support to engineering students.

“If we truly want a smarter future, we need to make it easier for aspiring engineers to support themselves and their families as they prepare to drive Australia’s progress,” she said. 

Rewiring Australia, chief scientist and co-founder Saul Griffith expressed approval of the budget for its support of workforce development, renewable, manufacturing and community energy resources.

Dr Griffith said the nation “needs more electricians and energy workers to install solar panels, storage systems, and electric appliances”.

“The government’s $91 million commitment to accelerating the growth of a clean energy workforce is crucial and long overdue.”

Motor Trades Association of Australia (MTAA) CEO Matt Hobbs welcomed the government’s recognition of challenges faced by automotive retail businesses and its proactive approach towards preparing Australia for an EV future through investments in skills, infrastructure and technology but stressed that there was still “much more work to be done”.

He highlighted that his organisation has “consistently advocated for assistance to prepare its members for the transformation taking place in the automotive sector”.

“And the Australian Government has listened,” he said.

The budget’s commitment of $60 million to help automotive businesses install EV chargers at their premises, is also seen as crucial in preparing dealers and repairers for the EV revolution while attracting private investment in essential infrastructure. 

Additionally, the allocation of $84.5 million to implement the New Vehicle Efficiency Standard (NVES) with a new regulator and platform is expected to meet the evolving needs of the sector and government in a changing industry landscape.